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Comstock Reports Second Quarter 2024 Results

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Comstock Holding Companies (Nasdaq: CHCI) reported strong Q2 2024 results, showcasing continued growth in its asset-light, debt-free business model. Key highlights include:

- Revenue increased 20% to $10.8 million; YTD up 11% to $21.4 million
- Net income rose 99% to $0.9 million; YTD up 51% to $1.9 million
- Adjusted EBITDA grew 56% to $1.6 million; YTD up 16% to $3.1 million
- 103% increase in recurring fee-based Property & Parking Management revenue; YTD up 74%
- 24 additional Assets Under Management compared to prior year
- 6 new commercial leases executed in Q2, representing over 60,000 sqft of office and retail space
- Residential managed portfolio 97% leased; in-place rent growth of 7% vs. prior year

The company's managed portfolio performance demonstrates the 'flight-to-quality' trend in commercial real estate, with stabilized assets approximately 95% leased overall.

Comstock Holding Companies (Nasdaq: CHCI) ha riportato risultati solidi per il secondo trimestre del 2024, evidenziando una continua crescita nel suo modello di business leggero, senza debiti. I punti salienti includono:

- I ricavi sono aumentati del 20% a $10,8 milioni; da inizio anno un aumento dell'11% a $21,4 milioni
- Il reddito netto è aumentato del 99% a $0,9 milioni; da inizio anno un aumento del 51% a $1,9 milioni
- L'EBITDA rettificato è cresciuto del 56% a $1,6 milioni; da inizio anno un aumento del 16% a $3,1 milioni
- Aumento del 103% nei ricavi ricorrenti provenienti dalla gestione di proprietà e parcheggi; da inizio anno un aumento del 74%
- 24 asset aggiuntivi sotto gestione rispetto all'anno precedente
- 6 nuovi affitti commerciali chiusi nel Q2, rappresentando oltre 60.000 piedi quadrati di spazio per uffici e negozi
- Portafoglio residenziale gestito con il 97% di unità affittate; crescita dell'affitto in corso del 7% rispetto all'anno precedente

Le performance del portafoglio gestito dall'azienda dimostrano la tendenza al 'volo verso la qualità' nel settore immobiliare commerciale, con asset stabilizzati affittati per circa il 95% nel complesso.

Comstock Holding Companies (Nasdaq: CHCI) reportó sólidos resultados para el segundo trimestre de 2024, mostrando un crecimiento continuo en su modelo de negocio ligero y sin deudas. Los aspectos más destacados incluyen:

- Los ingresos aumentaron un 20% a $10.8 millones; el acumulado del año subió un 11% a $21.4 millones
- La renta neta creció un 99% a $0.9 millones; el acumulado del año subió un 51% a $1.9 millones
- El EBITDA ajustado creció un 56% a $1.6 millones; el acumulado del año aumentó un 16% a $3.1 millones
- Aumento del 103% en los ingresos recurrentes por gestión de propiedades y estacionamientos; acumulado del año subió un 74%
- 24 activos adicionales bajo gestión en comparación con el año anterior
- Se ejecutaron 6 nuevos arrendamientos comerciales en el Q2, representando más de 60,000 pies cuadrados de espacio de oficinas y comercio
- Portafolio residencial gestionado con un 97% arrendado; crecimiento del alquiler en curso del 7% en comparación con el año anterior

El desempeño del portafolio gestionado de la compañía demuestra la tendencia de 'vuelo hacia la calidad' en bienes raíces comerciales, con activos estabilizados que están aproximadamente al 95% arrendados en general.

Comstock Holding Companies (Nasdaq: CHCI)는 2024년 2분기 강력한 실적을 발표하며 자산이 가벼운 부채 없는 비즈니스 모델의 지속적인 성장을 보여주었습니다. 주요 하이라이트는 다음과 같습니다:

- 수익은 20% 증가하여 1,080만 달러에 달했으며, 연초 대비 11% 증가하여 2,140만 달러에 도달했습니다.
- 순이익은 99% 증가하여 90만 달러에 달했으며, 연초 대비 51% 증가하여 190만 달러에 도달했습니다.
- 조정된 EBITDA는 56% 증가하여 160만 달러에 달했으며, 연초 대비 16% 증가하여 310만 달러에 도달했습니다.
- 반복 수수료 기반의 부동산 및 주차 관리 수익이 103% 증가했으며, 연초 대비 74% 증가했습니다.
- 지난해 대비 24개의 추가 자산을 관리하고 있습니다.
- 2분기에 6개의 새로운 상업 임대계약이 체결되었으며, 이는 60,000평방피트 이상의 사무실 및 소매 공간을 나타냅니다.
- 관리되는 주거 포트폴리오의 임대율은 97%이며, 지난해 대비 임대료 성장률은 7%입니다.

회사의 관리 포트폴리오 성과는 상업 부동산에서 '품질을 향한 이동' 트렌드를 보여주며, 안정화된 자산은 전체적으로 약 95%가 임대되었습니다.

Comstock Holding Companies (Nasdaq: CHCI) a annoncé de solides résultats pour le deuxième trimestre de 2024, illustrant une croissance continue de son modèle d'entreprise léger et sans dette. Les points saillants comprennent :

- Les revenus ont augmenté de 20 % pour atteindre 10,8 millions de dollars ; depuis le début de l'année, ils ont augmenté de 11 % pour atteindre 21,4 millions de dollars
- Le revenu net a augmenté de 99 % pour atteindre 0,9 million de dollars ; depuis le début de l'année, il a augmenté de 51 % pour atteindre 1,9 million de dollars
- L'EBITDA ajusté a augmenté de 56 % pour atteindre 1,6 million de dollars ; depuis le début de l'année, il a augmenté de 16 % pour atteindre 3,1 millions de dollars
- Augmentation de 103 % des revenus récurrents tirés de la gestion immobilière et du stationnement ; depuis le début de l'année, ils ont augmenté de 74 %
- 24 actifs supplémentaires sous gestion par rapport à l'année précédente
- 6 nouveaux baux commerciaux signés au T2, représentant plus de 60 000 pieds carrés d'espace de bureaux et de commerce
- Portefeuille résidentiel géré à 97 % loué ; croissance des loyers de 7 % par rapport à l'année précédente

La performance du portefeuille géré par l'entreprise illustre la tendance au 'vol vers la qualité' dans l'immobilier commercial, les actifs stabilisés étant en moyenne loués à environ 95 %.

Comstock Holding Companies (Nasdaq: CHCI) hat im zweiten Quartal 2024 solide Ergebnisse erzielt, die ein kontinuierliches Wachstum in seinem leichten, schuldenfreien Geschäftsmodell zeigen. Die wichtigsten Höhepunkte sind:

- Der Umsatz stieg um 20% auf 10,8 Millionen USD; seit Jahresbeginn um 11% auf 21,4 Millionen USD
- Der Nettogewinn stieg um 99% auf 0,9 Millionen USD; seit Jahresbeginn um 51% auf 1,9 Millionen USD
- Das bereinigte EBITDA wuchs um 56% auf 1,6 Millionen USD; seit Jahresbeginn um 16% auf 3,1 Millionen USD
- 103% Zuwachs bei den wiederkehrenden gebührenbasierten Einnahmen aus Immobilien- und Parkmanagement; seit Jahresbeginn um 74% gestiegen
- 24 zusätzliche verwaltete Vermögenswerte im Vergleich zum Vorjahr
- 6 neue kommerzielle Mietverträge im 2. Quartal abgeschlossen, was über 60.000 Quadratfuß Büro- und Einzelhandelsfläche darstellt
- Das verwaltete Wohnportfolio ist zu 97% vermietet; Mietwachstum vor Ort von 7% im Vergleich zum Vorjahr

Die Leistung des verwalteten Portfolios des Unternehmens zeigt den Trend zur 'Qualitätswanderung' im gewerblichen Immobilienbereich, mit stabilisierten Vermögenswerten, die insgesamt etwa 95% vermietet sind.

Positive
  • Revenue increased 20% to $10.8 million in Q2 2024
  • Net income rose 99% to $0.9 million in Q2 2024
  • Adjusted EBITDA grew 56% to $1.6 million in Q2 2024
  • 103% increase in recurring fee-based Property & Parking Management revenue
  • 24 additional Assets Under Management compared to prior year
  • 6 new commercial leases executed in Q2, representing over 60,000 sqft of office and retail space
  • Residential managed portfolio 97% leased with 7% in-place rent growth
  • Commercial managed portfolio 93% leased
  • Pre-sales of JW Marriott-branded residences exceeding projections on volume and pricing
Negative
  • None.

Insights

Comstock's Q2 2024 results demonstrate robust growth and operational efficiency. Revenue increased by 20% to $10.8 million, while net income surged 99% to $0.9 million. The 103% increase in recurring fee-based Property & Parking Management revenue is particularly noteworthy, indicating a strong, stable income stream. Adjusted EBITDA growth of 56% to $1.6 million suggests improved profitability and operational efficiency.

The company's asset-light, debt-free model appears to be paying dividends, allowing for scalable growth without significant capital expenditure. The expansion of the managed portfolio to 69 assets (up 24 from the prior year) underpins this growth strategy. With a 93% leased commercial portfolio and 97% leased residential portfolio, Comstock is well-positioned to generate consistent cash flows.

Comstock's performance reflects the "flight-to-quality" trend in commercial real estate. The company's focus on trophy-class office properties and transit-oriented developments is proving successful, with leasing rates well above industry averages. The 7% in-place rent growth for the residential portfolio is impressive, especially given current market conditions.

The progress at The Row at Reston Station is particularly promising. The pre-sales of JW Marriott-branded residences exceeding projections in both volume and pricing indicates strong demand for luxury mixed-use developments. The opening of VIDA Fitness and securing Fresh Market as an anchor tenant for Midline at Reston Station further enhances the attractiveness of these properties. This success in mixed-use development could provide a blueprint for future projects and sustained growth.

Comstock's strategy of focusing on high-quality, mixed-use, transit-oriented properties in the Washington, D.C. region appears to be paying off. The company's ability to attract and retain tenants, even in a challenging office market, speaks to the strength of its portfolio and management. The expansion into parking management through ParkX, with 91% QTD revenue growth, demonstrates successful diversification of revenue streams.

Looking ahead, Comstock's pipeline of projects, including the JW Marriott Hotel & Residences and new Trophy-Class office towers, positions the company for continued growth. The strong pre-sales of condominiums and interest from office tenants in these new developments suggest that Comstock is well-aligned with market demands. However, investors should monitor broader economic conditions and their potential impact on commercial real estate, particularly in the office sector.

Asset-light, debt-free business model continues to deliver positive results

  • Revenue increased 20% to $10.8 million; YTD increase of 11% to $21.4 million
    • 103% increase in recurring fee-based Property & Parking Management revenue; YTD increase of 74%
    • 24 additional AUM vs. prior year
  • Net income increased 99% to $0.9 million; YTD increase of 51% to $1.9 million
  • Adjusted EBITDA increased 56% to $1.6 million; YTD increase of 16% to $3.1 million
  • 6 new commercial leases executed in Q2 representing over 60,000 sqft. of office and retail space
  • Residential managed portfolio 97% leased; in-place rent growth of 7% vs. prior year

RESTON, Va.--(BUSINESS WIRE)-- Comstock Holding Companies, Inc. (Nasdaq: CHCI) (“Comstock” or the “Company”), a leading asset manager, developer, and operator of mixed-use and transit-oriented properties in the Washington, D.C. region, announced its financial results for the second quarter ended June 30, 2024.

“Our growth continued as expected in Q2, as we achieved comparative quarterly revenue growth for the 16th consecutive period driven by the expansion of our managed portfolio and the predictable, low-risk, fee-based nature of our business,” said Christopher Clemente, Comstock’s Chairman and Chief Executive Officer. “The stabilized assets in our managed portfolio are approximately 95% leased in total, and include numerous trophy-class office properties leased well-above industry averages as well as multiple residential buildings that are essentially at full capacity. The performance of our managed portfolio clearly demonstrates the “flight-to-quality” trend that is reshaping the commercial real estate landscape. It is also a testament to our dedicated team of professionals who show up every day to make a difference for our customers, our stakeholders, and in the communities that we serve.”

Mr. Clemente continued, “During the quarter, our long-term vision for The Row at Reston Station started coming into focus. We topped off two new buildings, Virginia’s first-ever JW Marriott Hotel and Residences and the BLVD Haley residential tower. We held a grand opening for a state-of-the-art VIDA Fitness facility, the first of several exciting retail openings scheduled to occur during the next year, which impressively has already attracted approximately 2,000 members. In addition, we opened the on-site sales office for the JW Marriott-branded residences that will occupy the top half of the 28-story tower and begin delivering in mid-2025. I am pleased to report that pre-sales of the residences are currently exceeding projections on both volume and pricing, a strong indicator that sales of the remaining units will continue. I look forward to reporting on our accomplishments in the upcoming periods as we continue to focus on driving further value for all stakeholders.”

Key Performance Metrics

($ in thousands, except per share and portfolio data)

Q1 2024

 

Q1 2023

 

YTD 2024

 

YTD 2023

 

Revenue

$

10,753

 

$

8,967

 

$

21,391

 

$

19,242

 

 

 

 

 

 

 

 

 

 

Net income

$

946

 

$

475

 

$

1,856

 

$

1,229

 

Adjusted EBITDA

 

1,601

 

 

1,027

 

 

3,087

 

 

2,653

 

 

 

 

 

 

 

 

 

 

Net income per share — diluted

$

0.09

 

$

0.05

 

$

0.18

 

$

0.12

 

 

 

 

 

 

 

 

 

 

Managed Portfolio - # of assets

 

69

 

 

45

 

 

69

 

 

45

Please see the included financial tables for a reconciliation of Adjusted EBITDA to the most directly comparable GAAP financial measure.

Additional Information

  • Commercial managed portfolio leased percentage of 93%1; 16 leases representing over 100,000 square feet executed YTD, including ~75,000 square feet leased to new office and retail tenants.
  • Residential managed portfolio leased percentage of 97%; more than 300 units leased YTD.
  • Continued rapid expansion of ParkX AUM led to QTD and YTD increases in total revenue of 91% and 67%, respectively.
  • Significant activity from key assets located at The Row, which represents the second phase of the Reston Station development, including:
    • Continued construction progress on the JW Marriott Hotel & Residences; double-digit pre-sales of condominiums located in the building, exceeding expectations for sales projections and pricing.
    • Continued construction progress on two new Trophy-Class office towers that will be ready for occupancy in 2025 and 2026, one of which includes the flagship 50,000 square foot VIDA Fitness that opened in May 2024. Both buildings are attracting considerable interest from office tenants seeking to relocate from aging office parks to the well-planned, mixed-use, and transit-oriented developments in the Dulles Corridor.
  • Significant progress on design and retail leasing for Midline at Reston Station, the next phase of the Reston Station development; includes an anchor tenant, Fresh Market, among other leases.
_____________________________

1

% represents stabilized assets and excludes recently delivered office tower from The Row at Reston Station

About Comstock

Founded in 1985, Comstock is a leading asset manager, developer, and operator of mixed-use and transit-oriented properties in the Washington, D.C. region. With a managed portfolio that includes approximately 10 million square feet of stabilized, under construction, and planned assets that are strategically located at key Metro stations, Comstock is at the forefront of the urban transformation taking place in one of the nation’s best real estate markets. Comstock’s developments include some of the largest and most prominent mixed-use and transit-oriented projects in the mid-Atlantic region, as well as multiple large-scale public-private partnership developments. For more information, please visit Comstock.com.

Cautionary Statement Regarding Forward-Looking Statements

This release may include "forward-looking" statements that are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. These forward-looking statements can be identified by use of words such as "anticipate," "believe," "estimate," "may," "intend," "expect," "will," "should," "seeks" or other similar expressions. Forward-looking statements are based largely on our expectations and involve inherent risks and uncertainties, many of which are beyond our control. You should not place any undue reliance on any forward-looking statement, which speaks only as of the date made. Any number of important factors could cause actual results to differ materially from those projected or suggested by the forward-looking statements. Comstock specifically disclaims any obligation to update or revise any forward-looking statements, whether as a result of new information, future developments, or otherwise.

COMSTOCK HOLDING COMPANIES, INC.

Consolidated Balance Sheets

(Unaudited; In thousands)

 

June 30,

 

December 31,

 

 

2024

 

 

 

2023

 

Assets

 

 

 

Current assets:

 

 

 

Cash and cash equivalents

$

17,431

 

 

$

18,788

 

Accounts receivable, net

 

437

 

 

 

496

 

Accounts receivable - related parties

 

6,106

 

 

 

4,749

 

Prepaid expenses and other current assets

 

514

 

 

 

353

 

Total current assets

 

24,488

 

 

 

24,386

 

Fixed assets, net

 

545

 

 

 

478

 

Intangible assets

 

144

 

 

 

144

 

Leasehold improvements, net

 

74

 

 

 

89

 

Investments in real estate ventures

 

6,239

 

 

 

7,077

 

Operating lease assets

 

6,358

 

 

 

6,790

 

Deferred income taxes, net

 

10,318

 

 

 

10,885

 

Deferred compensation plan assets

 

390

 

 

 

53

 

Other assets

 

24

 

 

 

37

 

Total assets

$

48,580

 

 

$

49,939

 

 

 

 

 

Liabilities and Stockholders' Equity

 

 

 

Current liabilities:

 

 

 

Accrued personnel costs

$

1,433

 

 

$

4,681

 

Accounts payable and accrued liabilities

 

882

 

 

 

838

 

Current operating lease liabilities

 

888

 

 

 

854

 

Total current liabilities

 

3,203

 

 

 

6,373

 

Deferred compensation plan liabilities

 

391

 

 

 

77

 

Operating lease liabilities

 

5,819

 

 

 

6,273

 

Total liabilities

 

9,413

 

 

 

12,723

 

 

 

 

 

Stockholders' equity:

 

 

 

Class A common stock

 

96

 

 

 

94

 

Class B common stock

 

2

 

 

 

2

 

Additional paid-in capital

 

202,205

 

 

 

202,112

 

Treasury stock

 

(2,662

)

 

 

(2,662

)

Accumulated deficit

 

(160,474

)

 

 

(162,330

)

Total stockholders' equity

 

39,167

 

 

 

37,216

 

Total liabilities and stockholders' equity

$

48,580

 

 

$

49,939

 

COMSTOCK HOLDING COMPANIES, INC.

Consolidated Statements of Operations

(Unaudited; In thousands, except per share data)

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

 

 

2023

 

 

 

2024

 

 

 

2023

 

Revenue

$

10,753

 

 

$

8,967

 

 

$

21,391

 

 

$

19,242

 

Operating costs and expenses:

 

 

 

 

 

 

 

Cost of revenue

 

8,907

 

 

 

7,681

 

 

 

17,792

 

 

 

16,004

 

Selling, general, and administrative

 

546

 

 

 

572

 

 

 

1,081

 

 

 

1,136

 

Depreciation and amortization

 

73

 

 

 

71

 

 

 

141

 

 

 

138

 

Total operating costs and expenses

 

9,526

 

 

 

8,324

 

 

 

19,014

 

 

 

17,278

 

Income (loss) from operations

 

1,227

 

 

 

643

 

 

 

2,377

 

 

 

1,964

 

Other income (expense):

 

 

 

 

 

 

 

Interest income

 

166

 

 

 

 

 

 

307

 

 

 

 

Gain (loss) on real estate ventures

 

(101

)

 

 

(68

)

 

 

(294

)

 

 

(479

)

Other income (expense), net

 

11

 

 

 

47

 

 

 

33

 

 

 

47

 

Income (loss) from operations before income tax

 

1,303

 

 

 

622

 

 

 

2,423

 

 

 

1,532

 

Provision for (benefit from) income tax

 

357

 

 

 

147

 

 

 

567

 

 

 

303

 

Net income (loss)

$

946

 

 

$

475

 

 

$

1,856

 

 

$

1,229

 

 

 

 

 

 

 

 

 

Weighted-average common stock outstanding:

 

 

 

 

 

 

 

Basic

 

9,830

 

 

 

9,632

 

 

 

9,812

 

 

 

9,608

 

Diluted

 

10,300

 

 

 

10,052

 

 

 

10,243

 

 

 

10,060

 

 

 

 

 

 

 

 

 

Net income (loss) per share:

 

 

 

 

 

 

 

Basic

$

0.10

 

 

$

0.05

 

 

$

0.19

 

 

$

0.13

 

Diluted

$

0.09

 

 

$

0.05

 

 

$

0.18

 

 

$

0.12

 

COMSTOCK HOLDING COMPANIES, INC.

Non-GAAP Financial Measures

(Unaudited; In thousands)

Adjusted EBITDA

 

The following table presents a reconciliation of net income (loss) from continuing operations, the most directly comparable financial measure as measured in accordance with GAAP, to Adjusted EBITDA:

 

 

Three Months Ended June 30,

 

Six Months Ended June 30,

 

 

2024

 

 

 

2023

 

 

2024

 

 

 

2023

Net income (loss)

$

946

 

 

$

475

 

$

1,856

 

 

$

1,229

Interest income

 

(166

)

 

 

 

 

(307

)

 

 

Income taxes

 

357

 

 

 

147

 

 

567

 

 

 

303

Depreciation and amortization

 

73

 

 

 

71

 

 

141

 

 

 

138

Stock-based compensation

 

290

 

 

 

266

 

 

536

 

 

 

504

(Gain) loss on real estate ventures

 

101

 

 

 

68

 

 

294

 

 

 

479

Adjusted EBITDA

$

1,601

 

 

$

1,027

 

$

3,087

 

 

$

2,653

The increases in Adjusted EBITDA for the three and six months ended June 30, 2024 were primarily driven by the significant increases in recurring fee-based property management revenue in the current period.

We define Adjusted EBITDA as net income (loss) from continuing operations, excluding the impact of interest expense (net of interest income), income taxes, depreciation and amortization, stock-based compensation, and gain or loss on equity method investments in real estate ventures.

We use Adjusted EBITDA to evaluate financial performance, analyze the underlying trends in our business and establish operational goals and forecasts that are used when allocating resources. We expect to compute Adjusted EBITDA consistently using the same methods each period.

We believe Adjusted EBITDA is a useful measure because it permits investors to better understand changes over comparative periods by providing financial results that are unaffected by certain non-cash items that are not considered by management to be indicative of our operational performance.

While we believe that Adjusted EBITDA is useful to investors when evaluating our business, it is not prepared and presented in accordance with GAAP, and therefore should be considered supplemental in nature. Adjusted EBITDA should not be considered in isolation, or as a substitute, for other financial performance measures presented in accordance with GAAP. Adjusted EBITDA may differ from similarly titled measures presented by other companies.

Investor Contact

Christopher Guthrie

Executive Vice President & Chief Financial Officer

cguthrie@comstock.com

703-230-1292



Media Contact

publicrelations@comstock.com

301-785-6327

Source: Comstock Holding Companies, Inc.

FAQ

What was Comstock's (CHCI) revenue growth in Q2 2024?

Comstock (CHCI) reported a 20% increase in revenue to $10.8 million for Q2 2024.

How much did Comstock's (CHCI) net income increase in Q2 2024?

Comstock's (CHCI) net income increased by 99% to $0.9 million in Q2 2024.

What was the occupancy rate of Comstock's (CHCI) residential managed portfolio in Q2 2024?

Comstock's (CHCI) residential managed portfolio was 97% leased in Q2 2024.

How many new commercial leases did Comstock (CHCI) execute in Q2 2024?

Comstock (CHCI) executed 6 new commercial leases in Q2 2024, representing over 60,000 sqft of office and retail space.

What was the growth in Comstock's (CHCI) Property & Parking Management revenue in Q2 2024?

Comstock (CHCI) reported a 103% increase in recurring fee-based Property & Parking Management revenue in Q2 2024.

Comstock Holding Companies, Inc.

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